Hyundai Motor forges hydrogen fuel cell partnership with Volkswagen

SEOUL -- As a frontrunner in the development of hydrogen fuel cell electric vehicles (FCEVs), South Korea's Hyundai auto group forged a business partnership with Volkswagen of Germany to develop technology on fuel cell batteries.

Hyundai said it has agreed with the German company to share patents and major parts and expand their technology collaboration aimed at securing a dominant position in the hydrogen electric vehicle market.

Unlike other global players which focused on the development of electric vehicles, Hyundai has pinned much hope on FCEVs, and its new FCEV car, NEXO, completed a 190-kilometer test run in February. NEXO's sales abroad are planned in the second half of this year.

Japan's Honda Motor established a joint venture with GM to co-produce a fuel cell system mounted on a hydrogen electric car, and Toyota is developing a hydrogen electric vehicle platform with BMW. Daimler AG, Ford, and Nissan have signed a three-way agreement for joint development of a common fuel system.

The partnership between Hyundai and Volkswagen will be a new turning point in creating an innovative industrial ecosystem through the development of the hydrogen-related industry and also vitalizing the global hydrogen electric car market, he said in a statement.

Hyundai will use NEXO for its first test run in China this year, followed by hydrogen fuel cell buses and commercial vehicles. China, which regards hydrogen fuel cell vehicles as a promising industry, plans to put one million FCEVs on the road by 2030 and build some 1,000 hydrogen charge stations by 2030.

The Hyundai auto group, which has Kia Motors and Hyundai Mobis, a leading parts maker, under its wing, has been in trouble due to competition in the global market and challenges from carmakers in China and other emerging countries.

The tie-up with Volkswagen is seen as a new opportunity for Hyundai to boost its global competitiveness as Hyundai Mobis has already secured a matchless position in the production of core FCEV parts from its factory in Chungju, which is now capable of producing parts for 3,000 FCEVs per year.

Hyundai Mobis insists its FCEV pars factory has been designed to expand production if necessary. Its fuel cell module called "Powertrain Fuelcell Complete (PFC)" combines key parts such as a fuel cell system, a drive motor, a power electronic component and a battery system. With Hyundai's PFC, Volkswagen can take the upper hand in producing FCEVs more easily than competitors.